Correlation Between Hecla Mining and Compania
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Compania at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hecla Mining and Compania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining and Compania de Minas, you can compare the effects of market volatilities on Hecla Mining and Compania and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hecla Mining with a short position of Compania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Compania.
Diversification Opportunities for Hecla Mining and Compania
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hecla and Compania is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Compania de Minas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania de Minas and Hecla Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hecla Mining are associated (or correlated) with Compania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania de Minas has no effect on the direction of Hecla Mining i.e., Hecla Mining and Compania go up and down completely randomly.
Pair Corralation between Hecla Mining and Compania
Assuming the 90 days horizon Hecla Mining is expected to under-perform the Compania. But the preferred stock apears to be less risky and, when comparing its historical volatility, Hecla Mining is 1.46 times less risky than Compania. The preferred stock trades about -0.11 of its potential returns per unit of risk. The Compania de Minas is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,210 in Compania de Minas on November 3, 2024 and sell it today you would earn a total of 66.00 from holding Compania de Minas or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hecla Mining vs. Compania de Minas
Performance |
| Timeline |
| Hecla Mining |
| Compania de Minas |
Hecla Mining and Compania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Compania
The main advantage of trading using opposite Hecla Mining and Compania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Compania can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Compania will offset losses from the drop in Compania's long position.| Hecla Mining vs. Triple Flag Precious | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Endeavour Silver Corp | Hecla Mining vs. Hecla Mining |
| Compania vs. Gold Royalty Corp | Compania vs. SilverCrest Metals | Compania vs. McEwen Mining | Compania vs. Hecla Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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